Porter Davis home buyers are asking why they weren't insured as required by law.
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A growing number of the builder's former customers are speaking out as they realise they won't be getting their deposits back.
Among them is Richard Williams, who lost his $40,000 deposit when Porter Davis went under.
Despite legislation in place to ensure he was insured, domestic building insurance was not taken out on his behalf meaning there is no legal recourse to recoup his money.
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It would have cost Porter Davis less than $1000 to insure his build.
Consumer Affairs Victoria states on its website that for work of more than $16,000, a builder must provide a current certificate of domestic building insurance before taking a deposit, as well as a copy of the insurance policy for their building project.
A number of former customers say it is now clear those rules weren't followed.
AAP has also seen the contract of a customer who paid their deposit in April 2020 and their insurance was not enacted until October that year.
That customer, who now feels lucky to be in a completed house, said they could have been in the same position - not knowing the insurance hadn't been paid.
It seems the six month delay between payment and insurance caught out a number of customers, who are now scratching their heads about how it could happen.
It is estimated 800 families have lost on average of between $30,000 and $50,000 because they simply were not insured.
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Dozens of Porter Davis customers, including Mr Williams, rallied on the steps of Victoria's parliament on Sunday calling for more government support.
Deputy Premier Jacinta Allan said the government was still assessing what steps it could take to support affected customers.
The Victorian Building Authority is now investigating whether Porter Davis may have breached any laws.
About 1700 homes across Victoria and Queensland were left in limbo when Porter Davis went into liquidation last month.
On Monday liquidators Grant Thornton confirmed Nostra Property Group would complete up to 375 of the houses left in limbo after the Porter Davis collapse.
Victorian Opposition Leader John Pesutto said that was a positive development, but noted many other would-be home owners still faced difficulty.
Australian Associated Press
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